ECON 2305 Lecture 5 Outline of Last Lecture I Macro Goals II Supply and Demand III Non price determinants Outline of Current Lecture I Non price determinants continued Current Lecture Competing Substitute goods ex Coke and pepsi Price for one goes up demand for the other goes up Expectations Assumptions or expectations of an increase or decrease in the price affect the demand of the good Number of buyers A competition between individual demand vs market demand Non price determinants of supply Price of inputs Inverse relationship Technology Regulations Inverse relationship Subsidies Government pays the producers for their product The source of this money is the tax payers Prices of other goods Expectations Number of sellers Taxes If you want to decrease usage of a product you simply tax it 2 main questions that help form the non price determinants What is the market Is there a parameter which impacts supply or demand
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